Splitlink said:
Hi Split,
I think it's difficult to earn money shorting stocks in a rising market. The sheer bullish sentiment might be enough to push up prices of even average companies. But if you you a day trader, then it would be a different story.
Good trading,
Hung
pboi said:
Pboi,
Welcome to the club! I think we learn a lot by disecting past successes and failures. It's not much different from looking at charts to learn about shares/indices...
I am confident that if I stick to my rules, I'll be a winner. But it's hard when you just start out and have time to sit in front of a computer. So I end up taking not the best trades but the average or sometimes the worst possible. Consider it part of the learning curve then!
Later,
Hung
FTSE above 6000 mark
And this is a first in the last five years. To be honest, I am very tempted to short it at this level. But I learnt my lesson and won't.
Like the DOW, it also offered patient swing traders three chances to ride the wave since January.
And this is a first in the last five years. To be honest, I am very tempted to short it at this level. But I learnt my lesson and won't.
Like the DOW, it also offered patient swing traders three chances to ride the wave since January.
Attachments
Stop loss order for AZN
Stop loss order at 2857 is in for AZN, risking about 40 points. Limit sell is in as well at 2960.
I quite like Fins' new platform. It allows me to place stop and limit orders on a single screen. Good service.
And I just learnt that the pharmaceutical industry actually looks quite bearish. The proof is AZN share price dropped in the day that the FTSE climbed above the 6000 mark.
But with my stake of just 30p, I won't close the trade unless I am stopped out.
Nothing is new under the sun, but I learn new things every single day.
Stop loss order at 2857 is in for AZN, risking about 40 points. Limit sell is in as well at 2960.
I quite like Fins' new platform. It allows me to place stop and limit orders on a single screen. Good service.
And I just learnt that the pharmaceutical industry actually looks quite bearish. The proof is AZN share price dropped in the day that the FTSE climbed above the 6000 mark.
But with my stake of just 30p, I won't close the trade unless I am stopped out.
Nothing is new under the sun, but I learn new things every single day.
Attachments
You are very brave!
What I learnt is that there're many people ready to dive in the rising market at a price deem low enough for them. That's why it's hard to make money shorting at the moment. Unless you can capture 30 minute down swing everyday.
Tell me when you go short, so that I can go long
Good trading,
Hung
What I learnt is that there're many people ready to dive in the rising market at a price deem low enough for them. That's why it's hard to make money shorting at the moment. Unless you can capture 30 minute down swing everyday.
Tell me when you go short, so that I can go long
Good trading,
Hung
More fund to Fins
I've decided to put more 'venture capital' into my account at Fins. The total now is 300. Still have around 300 with CMC (yes, haven't closed the account) and 300 credit facility with Worldspreads.
My aim is to go back to year zero in the next 8-16 weeks.
Have also asked Fins to allow me to trade a minimum stake size of just 1p for the next 8 weeks. I don't think I'll ever trade 1p stake, but risking 30-50p on the DOW would be my limit at the moment.
I've decided to put more 'venture capital' into my account at Fins. The total now is 300. Still have around 300 with CMC (yes, haven't closed the account) and 300 credit facility with Worldspreads.
My aim is to go back to year zero in the next 8-16 weeks.
Have also asked Fins to allow me to trade a minimum stake size of just 1p for the next 8 weeks. I don't think I'll ever trade 1p stake, but risking 30-50p on the DOW would be my limit at the moment.
pboi said:
Hi pboi,
Remember what I said the last time we chatted!
I tried shorting a share yesterday and lost money. I'm waiting for an established trend before I short again (this week )Have a nice weekend everyone, I'm off until Monday.
Split
Just an idea
I am thinking of going long DOW futures and shorting DOW 'daily cash' whenever the DOW moves up 80-100 points. I'll have a look at the DOW's chart again but there has normally been overlapping of price bars. Even it the DOW is trending up, it moves down 30 points every day.
I simply think that by placing a limit sell order for the DOW about 100 points from where it is now and a limit buy about 30 points below entry point with no stop loss (as the position is hedged by the future contract), it will stand a good chance of being a winning trade.
Of course, I'll only long the DOW at optimum entry point. And now is not the time. I'll have a look at a stock that has the same characteristics.
I am thinking of going long DOW futures and shorting DOW 'daily cash' whenever the DOW moves up 80-100 points. I'll have a look at the DOW's chart again but there has normally been overlapping of price bars. Even it the DOW is trending up, it moves down 30 points every day.
I simply think that by placing a limit sell order for the DOW about 100 points from where it is now and a limit buy about 30 points below entry point with no stop loss (as the position is hedged by the future contract), it will stand a good chance of being a winning trade.
Of course, I'll only long the DOW at optimum entry point. And now is not the time. I'll have a look at a stock that has the same characteristics.
Splitlink said:
That's true.
What I mean is the DOW travels down about a third of half of the previous day's bar almost every day. Doesn't it make sense to short it when it moves about 30-50 points above yesterday's high and get out of the trade when it moves down about 30 points from your entry.
If you look at the chart again, the odds are in the shorter's favour.
Best,
Hung
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